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NDIC budgets N16bn for Sustenance of Mortgage

By The Citizen
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The Managing Director of the Nigerian Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim said N16 billion has been earmarked by the corporation to ensure the sustenance of primary mortgage banking in the country.

However,  Umar  decried the low contribution by the micro-finance  banks operators both in the North-east and North-west of the country.

Speaking at a two-day workshop, organised by the corporation for over 97 operators in the microfinance banking sub-sector held in Kano yesterday, the NDIC boss decried a situation whereby operators don't pay their statutory premium to the Central Bank of Nigeria (CBN).

According to him, the corporation only collects N1.3 billion from the payment of premium which he described as dismal. The NDIC boss said the amount was too small, compared to what the corporation expected.

He explained that the central bank, due to the non-payment of premium by some microfinance banks amongst others, had revoked 103 operating licenses of MFBs. He said  a tripartite agreement would be entered with operators to ensure compliance.

He explained that due to the problem of financial illiteracy, the corporation would embark on the sensitisation of people to know the importance as well as the role of the NDIC.
He warned Nigerians against patronising unlicensed wonder banks, which had constituted a lot of problems to the public. The activities of such illegal firms, he said, had made many people to pass through terrible experience in the hands of fraudsters.

Umaru advised MFB operators to expose illegal operators of such banks and report their activities to the police, promising that the corporation would soon publish names of the banks and managers of such fake financial institutions.